FTT bucked the trend and rose 5.7% in 24 hours! FTX creditors will receive additional compensation

Since its collapse in November 2022, the restructuring team of bankrupt cryptocurrency exchange FTX is actively raising funds to repay creditors.

After multiple sales of assets and tokens held by FTX, FTX’s accumulated funds have been enough to fully compensate creditors and customers for their losses in the bankruptcy event (calculated based on the currency price at the time), and even creditors You can also get extra rewards.

Creditors will receive additional compensation

According to the FTX statement, once the sale of all assets is completed, the company will have as much as $14.5 billion to $16.3 billion in cash available for distribution. It owes customers and other non-governmental creditors about $11 billion.

At the same time, depending on the type of creditor’s claim, some creditors can obtain 142% of the loss compensation, and the vast majority of customers (creditors with holdings of less than 50,000 US dollars) can obtain about 118% of the loss compensation.

Note: The loss compensation is calculated based on the platform funds on the day FTX exercised Chapter 11 of the Bankruptcy Law

FTX CEO John Ray said that in any bankruptcy case, this is very difficult. A credible result, because in past U.S. bankruptcy cases, creditors often received only small amounts of compensation.

The team proposes a reorganization plan, and users will receive compensation within 60 days after the plan is approved

In a filing on Tuesday, the reorganization team outlined cash distributions to creditors and the end of the bankruptcy code. The new details of Chapter 11 will see 98% of creditors be sent 118% of their losses within 60 days after the plan is approved by the court.

It is understood that U.S. Bankruptcy Judge John Dorsey plans to hold a hearing on the disclosure statement and voting procedures in late June. In other words, if all goes well, most creditors will be able to start receiving compensation as soon as September.

$FTT bucked the trend and rose 5.7% in 24 hours

Although the market is currently in a downward trend, it may be affected by this news, and FTT, the token issued by FTX, bucked the trend and rose. According to CoinGecko Data shows that FTT is currently quoted at US$1.75, with an increase of 7.1% in the past 24 hours, and an increase of 30.6% in the past 7 days.

However, please be reminded that FTX will not have a restart plan at present. FTT is currently more like a Meme coin, so please be careful of the risks.

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